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R
Raj87
April 4, 2025
Question

I am not materially participating in a small business which I have with my partners. Why is Turbo tax calculating me to pay self employment tax

  • April 4, 2025
  • 1 reply
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    V
    Vanessa A
    April 4, 2025

    How are you entering the income?  Are you simply an investor?  Did you materially participate in prior years?  Is there a code in box 14?

     

    If in box 14 there is a letter A, then this is saying your income is self-employment income.  Self-Employment income is subject to SE Taxes. To be self-employed, means you are employed and participating.  This would need to be changed on your K-1 in order for it not to be subject to SE Taxes. 

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